Switzerland's No. 1 bank, UBS AG, said it will buy PaineWebber Group Inc. in a cash-and-stock deal worth $10.8 billion. PaineWebber, a New York-based investment bank, will become an integral part of the Swiss group's UBS Warburg unit, the firms said. The deal, expected to be completed by November 2000, would give UBS access to PaineWebber's more than 8,000 brokers and client assets of over $475 billion.
American Airlines offered to buy the stock of Northwest Airlines for $3.7 billion, but merger talks are still far apart, The Washington Post reported. It said American Airlines, a unit of AMR Corp., has had its offer on the table for several weeks in talks with Northwest that started shortly after UAL Corp.'s United Airlines agreed to buy US Airways in June. That deal left American, the country's No. 2 carrier, looking for a merger partner.
A $3.15 billion plan to fund expansion into Europe's advanced wireless telecommunications market was announced by Hong Kong's largest conglomerate, Hutchison Whampoa Ltd. It said it would form an alliance with Royal KPN NV of the Netherlands and Japan's NTT DoCoMo Inc. to bid for so-called "third generation" licenses in Belgium, Britain, France, Germany, and possibly Italy. Under terms of the deal, NTT DoCoMo will buy 20 percent of Hutchison 3G UK Holdings for $1.8 billion, while KPN Mobile will take 15 percent for $1.35 billion.
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